Outsized returns on emerging cryptocurrencies fueled the year’s top-performing U.S. exchange-traded funds as the coronavirus pandemic upended global markets. Overall, those who played blockchain assets were rewarded handsomely. The year’s best fund, Grayscale Ethereum Trust, which holds Ethereum, the world’s second-largest cryptocurrency after Bitcoin, soared 333.7% for the year through Dec. 9.
Voyager Digital Ltd., a Canadian publicly traded, licensed crypto-asset broker that provides investors with a turnkey solution to trade and invest in crypto assets, just recently announced milestone growth, surpassing $200 million in assets under management (AUM), up 100% from $100 million at the beginning of November, and up 40x in the past 12 months.
This accelerated growth in AUM is led by unprecedented levels of net daily deposits, as the crypto bull market powers forward. With over $50 million in total net daily deposits since the beginning of November, the firm averaged nearly $1 million of net daily deposits for this same period.
Institutional money is beginning to flood into the sector.
“Voyager is firing on all cylinders as we enter 2021,” said Steve Ehrlich, Co-founder and CEO of Voyager. “The rapid pace of increase in net daily deposits is a testament to the success of our platform and the support from our community. AUM is a key metric for the performance of our business, and we are excited that users have placed their trust in our platform which allows us to generate greater returns and thereby reinvest to bring new products to market faster, including our desktop platform, debit and credit cards, and margin offerings.”
2020 has been a milestone year for the crypto-asset space with many well-known institutions either diversifying into Bitcoin or providing greater access to digital assets. The Company believes this continued momentum confirms that digital assets are a legitimate, standalone and investable asset class that is here to stay, providing investors with the ability to combat inflationary pressures from continued debasement of traditional fiat currencies. This evidence suggests that digital assets are starting to rival more established asset classes such as equities, fixed income, commodities and precious metals, in particular the $9 trillion traditional gold market.
“We’ve positioned Voyager with a leverageable technology platform ripe for expansion both internationally and product wise, with Canadian and European expansion planned in 2021,” continued Mr. Ehrlich. “We look forward to bringing Voyager’s regulatorily compliant and transparent platform to the masses in 2021.”
Cryptocurrency funds are a new breed of investment vehicle which parallels more traditional portfolio investments, such as mutual funds, but are largely made up of digital commodities. As a result, they operate by somewhat different rules than their traditional progenitor counterparts.